I am sharing a letter from FairTax headquarters for anyone wishing to sign a special petition to pass the FairTax now. They need lots of signatures so read, click and sign. Thanks, Bobbie
Dear FairTax supporters: Our march to deliver 100,000 signatures for our "Pass the FairTax" petition to Congress and the leading presidential candidates has begun, and the response has been intense. In just one week since our launch we've gathered over 30,000 names--including Gov. Mike Huckabee who's signing the petition tonight in Houston!
That's a fine catch, but we still need an equally important one...yours! Take a moment now and join over 30,000 fellow FairTax supporters who've already signed the "Pass the FairTax" petition to send a powerful message to Washington this April 15th!
As we said before, the presidential campaign season is full of talk about changing Washington. Great idea, so let's remind Congress and the leading presidential candidates that real reform in DC starts with bringing the FairTax to reality. Your support here is critical so please help us change Washington by signing now.
We are continuing to spread the FairTax cause to new prospects. We're running our "Change DC" full-page newspaper ads in Texas and Ohio--in advance of their March 4 primaries. That media buy is something supporters like you made happen with your generous financial contributions. Thank you!
The clock is ticking. So please join over 30,000 of your fellow FairTax supporters who've already raised their voice to help us change DC for the better now!
Sincerely, Ken Hoagland
Communications Director
If you would prefer sending a check or credit card contribution by mail, please download and print our contribution form here.
Friday, February 29, 2008
Wednesday, February 27, 2008
DOES THE FAIRTAX TAX RENTALS?
I have read a lot of erroneous comments on my blog and today I am re-running an earlier blog explaining the FairTax and rental housing. I am sure I will have many more erroneous comments as a result of this, but I think the neophytes of the FairTax need to know the truth.
One comment disregards the 23% sales tax and calls it a 40% sales tax and has even pushed it up to 100% tax at times. Now this is an hysterical disregard for the truth as the FairTax is written.
If you don't accept the truth, nothing adds up and it becomes a frustrating attempt to distort the truth. If you don't like the FairTax, fine, but don't distort the facts.
As you know, both owner-occupied and renter-occupied housing is taxable under the FairTax. With owner-occupied housing (new), the tax is collected up front at time of sale. With renter-occupied housing (new or used) the monthly rent is taxed as it is collected by the landlord.
Renter-occupied housing under the present Income tax is paid with after-tax dollars. Renter-occupied housing under the FairTax is paid with pre-tax dollars, plus there will be a pre-bate added to the renters income to stretch his/her dollar further.
Since investment property is not taxed under the FairTax, but the rents are taxed, the rental property will not be subject to double taxation.
An example in the FairTax Research information compared the Income Tax structure with the FairTax structure using $500 in monthly rents. With a 15% income tax bracket, the renter would have to earn $647 in order to pay his income taxes and payroll taxes and have $500 left to pay his rent.
Under the FairTax structure, the $500 rent plus the 23% sales tax amounts to $649, $2 more than the income tax in order to cover his rent. HOWEVER, in comes the pre-bate to the rescue! And that renter has only had to use $2 of his monthly pre-bate to pay his rent, leaving the remainder to pay the taxes on his medical bills, dental bills, groceries, etc.
I hope that answers any questions you might have. If not, go to FairTax.org for more information. Read the FairTax bill (HR25 or S1025) yourself. If you don't like what you read, then continue to mire yourself in the 60,000+ pages of the present income tax system and continue to watch our country rot economically.
One comment disregards the 23% sales tax and calls it a 40% sales tax and has even pushed it up to 100% tax at times. Now this is an hysterical disregard for the truth as the FairTax is written.
If you don't accept the truth, nothing adds up and it becomes a frustrating attempt to distort the truth. If you don't like the FairTax, fine, but don't distort the facts.
As you know, both owner-occupied and renter-occupied housing is taxable under the FairTax. With owner-occupied housing (new), the tax is collected up front at time of sale. With renter-occupied housing (new or used) the monthly rent is taxed as it is collected by the landlord.
Renter-occupied housing under the present Income tax is paid with after-tax dollars. Renter-occupied housing under the FairTax is paid with pre-tax dollars, plus there will be a pre-bate added to the renters income to stretch his/her dollar further.
Since investment property is not taxed under the FairTax, but the rents are taxed, the rental property will not be subject to double taxation.
An example in the FairTax Research information compared the Income Tax structure with the FairTax structure using $500 in monthly rents. With a 15% income tax bracket, the renter would have to earn $647 in order to pay his income taxes and payroll taxes and have $500 left to pay his rent.
Under the FairTax structure, the $500 rent plus the 23% sales tax amounts to $649, $2 more than the income tax in order to cover his rent. HOWEVER, in comes the pre-bate to the rescue! And that renter has only had to use $2 of his monthly pre-bate to pay his rent, leaving the remainder to pay the taxes on his medical bills, dental bills, groceries, etc.
I hope that answers any questions you might have. If not, go to FairTax.org for more information. Read the FairTax bill (HR25 or S1025) yourself. If you don't like what you read, then continue to mire yourself in the 60,000+ pages of the present income tax system and continue to watch our country rot economically.
Friday, February 22, 2008
WHAT'S THIS ALL ABOUT?
I just ran across this website while reading letters from FairTax volunteers and checked it out. It is a new site without much information, but they seem to have some good ideas, among them the FairTax. They expressed concern that the FairTax bill would not eliminate the 16th Amendment.
I think too much store is put into the elimination of the 16th Amendment. The 16th Amendment allows for an income tax, but does not require it. Let's pass the FairTax bill (HR25 & S1025) first, then enjoy its benefits, and finally, after a 5 year trial period of the FairTax, repeal the 16th Amendment.
I don't know if this website is the beginning of a new political party or a spin-off of conservative Republicans, but it will be interesting to keep an eye on it and see how it evolves.
http://falconparty.com/?p=1
I think too much store is put into the elimination of the 16th Amendment. The 16th Amendment allows for an income tax, but does not require it. Let's pass the FairTax bill (HR25 & S1025) first, then enjoy its benefits, and finally, after a 5 year trial period of the FairTax, repeal the 16th Amendment.
I don't know if this website is the beginning of a new political party or a spin-off of conservative Republicans, but it will be interesting to keep an eye on it and see how it evolves.
http://falconparty.com/?p=1
Thursday, February 21, 2008
OPPONENTS OF THE FAIR TAX - PUT UP OR SHUT UP
The following was sent to me by a FairTax Volunteer. It exposes the naysayers for what they are: Do Nothings!
William Gale, The Brookings Institution
Dale Jorgenson, Harvard University
James Poterba, MIT, and member of the President's Tax Reform Panel
Lindy Paul, former chief economist of Joint Committee on Taxation
Bruce Bartlett, conservative columnist and former economist with the Reagan administration
Rich Lowry - National Review
Jay Bookman - Atlanta Journal Constitution
Allen Buckley - Attorney and Libertarian candidate for U.S. Senate
John Suggs -- Ed itor, Creative Loafing Magazine
Robert McIntyre -- Citizens for Tax Justice
Any editor of the Wall Street Journal editorial page
That's an interesting and comprehensive list of FT opponents. I could not help but wonder what the outcome would be if you could get them (plus the author of the article) in a room together and asked them to agree on a tax reform approach which would address
1. the AMT
2. the spiral of complexity and higher compliance costs
3. the crisis in SS and Medicare
4. the trade deficit
5. the federal budget deficit
6. etc, etc
I know that the author has his own version of tax reform which abolishes corporate taxes (except for payroll), the AMT and makes up the revenue somewhere else. That proposal has one supporter that I am aware of - its author. It does not address the issues listed above in any meaningful way.
Then you have Dr Jorgenson, who has his own version of tax reform he calls "the efficient taxation of income" if memory serves. I would be willing to bet that after selling his books for many years and promoting it constantly, he has not more than 100 supporters.
Dr Poterba was on the President's panel which produced a report which was ignored by the White House which commissioned it, the congress which would have to enact it, and the general public. That proposal also basically ignored most of the economic issues enumerated above and contradicted its own interim report, the title of which was " America Needs a Better Tax System". That report was nothing less than a scathing indictment of the current system; it was a summarization of the input they received from the American public.
Jay Bookman is on the editorial board of a newspaper which regularly publishes articles about the economic challenges listed above but consistently fails to address solutions, other than imploring legislators to "do something". That newspaper has opposed the FT, even though it is the most comprehensive and effective way to address these issues.
The WSJ is in Steve Forbes' hip pocket and continues to tout "the flat tax" as if there were a single version of a flat tax that flat taxers rally around. They ignore the fact that "the flat tax" has been around for decades now and is on life support politically. Their only bill in the house is the Burgess bill, which is not revenue neutral and therefore will never be seriously considered by congress and has a grand total of six (6) co-sponsors. "The flat tax", of course, does not address the economic challenges listed above nearly as effectively or comprehensively as does the FT, regardless of which flavor of flat tax one supports.
I could keep going, but here is the bottom line for me. Unless and until the critics of the FT come up with a better way to approach these economic challenges that we face, I will continue to support it. If you put all these guys in a room and told them they could not come out until they reached a consensus, they would all die in that room.
William Gale, The Brookings Institution
Dale Jorgenson, Harvard University
James Poterba, MIT, and member of the President's Tax Reform Panel
Lindy Paul, former chief economist of Joint Committee on Taxation
Bruce Bartlett, conservative columnist and former economist with the Reagan administration
Rich Lowry - National Review
Jay Bookman - Atlanta Journal Constitution
Allen Buckley - Attorney and Libertarian candidate for U.S. Senate
John Suggs -- Ed itor, Creative Loafing Magazine
Robert McIntyre -- Citizens for Tax Justice
Any editor of the Wall Street Journal editorial page
That's an interesting and comprehensive list of FT opponents. I could not help but wonder what the outcome would be if you could get them (plus the author of the article) in a room together and asked them to agree on a tax reform approach which would address
1. the AMT
2. the spiral of complexity and higher compliance costs
3. the crisis in SS and Medicare
4. the trade deficit
5. the federal budget deficit
6. etc, etc
I know that the author has his own version of tax reform which abolishes corporate taxes (except for payroll), the AMT and makes up the revenue somewhere else. That proposal has one supporter that I am aware of - its author. It does not address the issues listed above in any meaningful way.
Then you have Dr Jorgenson, who has his own version of tax reform he calls "the efficient taxation of income" if memory serves. I would be willing to bet that after selling his books for many years and promoting it constantly, he has not more than 100 supporters.
Dr Poterba was on the President's panel which produced a report which was ignored by the White House which commissioned it, the congress which would have to enact it, and the general public. That proposal also basically ignored most of the economic issues enumerated above and contradicted its own interim report, the title of which was " America Needs a Better Tax System". That report was nothing less than a scathing indictment of the current system; it was a summarization of the input they received from the American public.
Jay Bookman is on the editorial board of a newspaper which regularly publishes articles about the economic challenges listed above but consistently fails to address solutions, other than imploring legislators to "do something". That newspaper has opposed the FT, even though it is the most comprehensive and effective way to address these issues.
The WSJ is in Steve Forbes' hip pocket and continues to tout "the flat tax" as if there were a single version of a flat tax that flat taxers rally around. They ignore the fact that "the flat tax" has been around for decades now and is on life support politically. Their only bill in the house is the Burgess bill, which is not revenue neutral and therefore will never be seriously considered by congress and has a grand total of six (6) co-sponsors. "The flat tax", of course, does not address the economic challenges listed above nearly as effectively or comprehensively as does the FT, regardless of which flavor of flat tax one supports.
I could keep going, but here is the bottom line for me. Unless and until the critics of the FT come up with a better way to approach these economic challenges that we face, I will continue to support it. If you put all these guys in a room and told them they could not come out until they reached a consensus, they would all die in that room.
Tuesday, February 19, 2008
WHY A FAIRTAX WILL HAPPEN
Below is a reply to the naysayers of the FairTax, from a FairTax Volunteer:
All of the interested parties opposing the FairTax can broadly be defined as " special interests". They represent a small, but highly motivated, number of opponents. Our obligation is to inform and facilitate the wishes of the vast majority of our citizens who cherish liberty, freedom of action, and fairness.
We always recognized the challenge overcoming the special interests. I suspect that there was a higher percentage of people who were comfortable living under the King of England, who doubted the ability of an army of citizen/patriots to defeat the mighty British, and knew we were under financed. If our founders had followed the easy, conventional course, no telling what the world would look like today.
To secure our future, we must recognize the need for reform and act on a course to transform the republic around the principles that are the foundation on which our country is built.I believe the FairTax is transformational.
It seems to me if we acted on the advice of naysayers and special interests polio would have never been controlled and we would continue to do research but never cure cancer. Just imagine how many existing and potential jobs were lost because of the Salk Vaccine. How many jobs will be lost when cancer is cured?
All advances and transformations lead to "retooling" our economy/work force. It is part of "creative destruction. Keep your hopes and effort focused on the goal- it is worth the effort!!!
Respectfully,Leo
All of the interested parties opposing the FairTax can broadly be defined as " special interests". They represent a small, but highly motivated, number of opponents. Our obligation is to inform and facilitate the wishes of the vast majority of our citizens who cherish liberty, freedom of action, and fairness.
We always recognized the challenge overcoming the special interests. I suspect that there was a higher percentage of people who were comfortable living under the King of England, who doubted the ability of an army of citizen/patriots to defeat the mighty British, and knew we were under financed. If our founders had followed the easy, conventional course, no telling what the world would look like today.
To secure our future, we must recognize the need for reform and act on a course to transform the republic around the principles that are the foundation on which our country is built.I believe the FairTax is transformational.
It seems to me if we acted on the advice of naysayers and special interests polio would have never been controlled and we would continue to do research but never cure cancer. Just imagine how many existing and potential jobs were lost because of the Salk Vaccine. How many jobs will be lost when cancer is cured?
All advances and transformations lead to "retooling" our economy/work force. It is part of "creative destruction. Keep your hopes and effort focused on the goal- it is worth the effort!!!
Respectfully,Leo
Monday, February 18, 2008
IS THE 23% FAIRTAX RATE REALLY TOO HIGH?
This is an excellent dissertation about the % of taxes paid with the FairTax - and yes, there really are embedded taxes. The following article comes from Tom Wright with the AFFT org.:
I just did my taxes, and after all of my deductions and exemptions, I only paid 14% of my income in taxes. Why is the FairTax a good deal for me?
We get this question all of the time…and it is a good one. Sadly, it is also proof of the problem with our tax code today. The problem is that you believe that you are only paying 14% in taxes…and you have forgotten about the payroll taxes that you pay and the corporate income taxes built into the price of everything that you buy.
Remember, the FairTax is revenue neutral, which means that it is not a tax cut. The FairTax expects that as Americans we will pay just as much in taxes tomorrow as we do today. The only differences will be that (a) we’ll know how much we are paying because it will be visible and (b) we’ll free the economy from the constraints of the income tax so that a rising economic tide can lift all boats.
Let’s imagine that you earn $100,000 (the round number, while high, will make the math easier)…and imagine that after all of your deductions, exemptions and credits, your income tax bill was $14,000, or 14% of your total income.
Now, remember that you also must pay 7.65% for payroll taxes, which is another $7,650. Also, remember that your employer must pay another 7.65% of your salary in payroll taxes (or, if you’re self-employed, you must pay this amount directly). That is another $7,650. Adding these amounts together, you will have paid $15,300 in payroll taxes.
Suddenly, even though you thought that you were only paying $14,000, or 14%, we now see that you’re paying $29,300, or 29%, and we haven’t even calculated the hidden taxes in the price of everything that you buy. This is why the FairTax is a better deal for you.
Today, taxes are hidden so you don’t really know how much you’re paying. Plus, today, for every dollar handed out to someone in a special tax break, tax credit, or tax exemption, the tax bill of everyone else must rise by that dollar. The FairTax will eliminate all of these special preferences, and when those who today receive those preferences start to pay more, you can begin to pay less.
I just did my taxes, and after all of my deductions and exemptions, I only paid 14% of my income in taxes. Why is the FairTax a good deal for me?
We get this question all of the time…and it is a good one. Sadly, it is also proof of the problem with our tax code today. The problem is that you believe that you are only paying 14% in taxes…and you have forgotten about the payroll taxes that you pay and the corporate income taxes built into the price of everything that you buy.
Remember, the FairTax is revenue neutral, which means that it is not a tax cut. The FairTax expects that as Americans we will pay just as much in taxes tomorrow as we do today. The only differences will be that (a) we’ll know how much we are paying because it will be visible and (b) we’ll free the economy from the constraints of the income tax so that a rising economic tide can lift all boats.
Let’s imagine that you earn $100,000 (the round number, while high, will make the math easier)…and imagine that after all of your deductions, exemptions and credits, your income tax bill was $14,000, or 14% of your total income.
Now, remember that you also must pay 7.65% for payroll taxes, which is another $7,650. Also, remember that your employer must pay another 7.65% of your salary in payroll taxes (or, if you’re self-employed, you must pay this amount directly). That is another $7,650. Adding these amounts together, you will have paid $15,300 in payroll taxes.
Suddenly, even though you thought that you were only paying $14,000, or 14%, we now see that you’re paying $29,300, or 29%, and we haven’t even calculated the hidden taxes in the price of everything that you buy. This is why the FairTax is a better deal for you.
Today, taxes are hidden so you don’t really know how much you’re paying. Plus, today, for every dollar handed out to someone in a special tax break, tax credit, or tax exemption, the tax bill of everyone else must rise by that dollar. The FairTax will eliminate all of these special preferences, and when those who today receive those preferences start to pay more, you can begin to pay less.
Saturday, February 16, 2008
"WEBINAR" ON MARCH 6TH - COME ONE, COME ALL
Neal Boortz will be hosting a Fair Tax "Webinar" on March 6th. Please check regularly on his website: <http://boortz.com/> For details for this nationwide event. You can submit any questions you still have for Neal to answer at the Webinar by sending your question to: Wsb750.promotions3@wsbradio.com
Please make the questions direct and to the point or they won't be considered. And make sure you send this email to all of your friends in your address book that support the Fair Tax or if they still have reservation and need some convincing.
Tuesday, February 12, 2008
IT'S IN THE BOOK! FAIRTAX: THE TRUTH
I guess you guys are too young to remember the song "It's in the Book", but I grew up with it and we loved it and quoted it constantly. Whenever we threw out a "fact" for consideration, we would say for emphasis: "It's in the book!" Now we have a new FairTax book and it just popped right back into my head.
This new book "FairTax: The Truth" answers the critics. It is written by the same guys who wrote The FairTax Book, John Linder and Neal Boortz. I have just begun to read it so cannot give you a book report; however, I picked up one thing so far:
The FairTax vision is "a collection of fundamental economic principles". "What are those principles? In short words, here's what we think the American tax system should be:
This new book "FairTax: The Truth" answers the critics. It is written by the same guys who wrote The FairTax Book, John Linder and Neal Boortz. I have just begun to read it so cannot give you a book report; however, I picked up one thing so far:
The FairTax vision is "a collection of fundamental economic principles". "What are those principles? In short words, here's what we think the American tax system should be:
- SIMPLE
- FAIR
- VOLUNTARY
- TRANSPARENT
- BORDER NEUTRAL
- INDUSTRY NEUTRAL
- GOOD FOR SOCIAL SECURITY AND MEDICARE"
It's in the book - pick it up and read it.
Monday, February 11, 2008
IS THE FAIRTAX PROPELLING HUCKABEE OR IS HUCKABEE PROPELLING THE FAIRTAX?
And do we care? The Fairtax is getting lots of publicity these days from Mike Huckabee and his presidential campaign. To his credit, Huckabee speaks about the FairTax every chance he gets. And he seems to be getting rewarded at the voting boothes. He is surprising (and distressing) a lot of people in high places - from the President on down to the talk show hosts.
I put the talk show hosts at the bottom of my list because of their disgusting behaviour lately. I am so tired of them talking against our only candidates in the Republican party left standing. Do you realize why these 3 are left standing? Because of the people voting their own minds and hearts. That should count for something.
I realize the FairTax is a non-partisan issue and I wish the Democrats would step up and help us more in their support of it. Wouldn't it be wonderful to have Obama or Hillary come out publicly in favor of the FairTax? Or how about this? Wouldn't it be wonderful if John McCain came out publicly in favor of the FairTax?
If they want my support for President, it would be real nice if they did. Meanwhile, I am sticking with Mike Huckabee as long as he is sticking with the FairTax.
I put the talk show hosts at the bottom of my list because of their disgusting behaviour lately. I am so tired of them talking against our only candidates in the Republican party left standing. Do you realize why these 3 are left standing? Because of the people voting their own minds and hearts. That should count for something.
I realize the FairTax is a non-partisan issue and I wish the Democrats would step up and help us more in their support of it. Wouldn't it be wonderful to have Obama or Hillary come out publicly in favor of the FairTax? Or how about this? Wouldn't it be wonderful if John McCain came out publicly in favor of the FairTax?
If they want my support for President, it would be real nice if they did. Meanwhile, I am sticking with Mike Huckabee as long as he is sticking with the FairTax.
Wednesday, February 6, 2008
DARE TO BE FAIR
Congressman John Linder, the Sponsor of HR25 the Fair Tax in the House of Representatives, has begun a program to get a feel for the actual support of the HR25 the Fair Tax. Here is his message:
“We need to show that the issue of fundamental tax reform is critical to the economic growth of this nation, and I want to bring a million names to Washington, D.C. to make that point. Please sign on today to show your support for the passage of HR25 to create a simple and fair tax system.”
Go to this website:
http://www.johnlinder.com/citizen_co_sponsor.asp
and add your name as a citizen co-sponsor of the FairTax.
Be sure to pass this information along to all of the supporters (including spouses) that you know and remember to tell all new supporters that you bring on board.
“We need to show that the issue of fundamental tax reform is critical to the economic growth of this nation, and I want to bring a million names to Washington, D.C. to make that point. Please sign on today to show your support for the passage of HR25 to create a simple and fair tax system.”
Go to this website:
http://www.johnlinder.com/citizen_co_sponsor.asp
and add your name as a citizen co-sponsor of the FairTax.
Be sure to pass this information along to all of the supporters (including spouses) that you know and remember to tell all new supporters that you bring on board.
Monday, February 4, 2008
WILL THE FAIR TAX CREATE AN UNDERGROUND ECONOMY?
That’s one of the big arguments against the FairTax. How could it be any worse than what we have today? Today we have under the table and illegal transactions. Today we have a hidden economy of illegal aliens. Today we have the prostitutes, pimps, drug dealers and just plain ordinary citizens who conduct transactions on a cash-only basis so they don’t have to pay income taxes.
Under the FairTax, the drug dealer will be paying his taxes when he spends his money. Illegal aliens will also pay taxes as they consume; however only legal households will receive the monthly prebate check to offset expenditures up to the poverty level.
The FairTax is so simple that some fear the public will understand it. It is so visible to the public that some fear the public will learn their true tax burden. It taxes us so directly that it eliminates the ability to buy and sell tax favors, so some that benefit from this practice hate it.
The FairTax would do more than any other legislation contemplated or possible to revive our economy, reverse our balance of trade, stop the fall in the value of the US dollar, save our industrial base and return to us the freedoms we have lost due to the income tax.
The FairTax eliminates the buying and selling of tax favors by public officials and lobbyists that today corrupts our political system. By this means it transfers power from Washington back to citizens where our Founders intended it to reside.
Under the FairTax, the drug dealer will be paying his taxes when he spends his money. Illegal aliens will also pay taxes as they consume; however only legal households will receive the monthly prebate check to offset expenditures up to the poverty level.
The FairTax is so simple that some fear the public will understand it. It is so visible to the public that some fear the public will learn their true tax burden. It taxes us so directly that it eliminates the ability to buy and sell tax favors, so some that benefit from this practice hate it.
The FairTax would do more than any other legislation contemplated or possible to revive our economy, reverse our balance of trade, stop the fall in the value of the US dollar, save our industrial base and return to us the freedoms we have lost due to the income tax.
The FairTax eliminates the buying and selling of tax favors by public officials and lobbyists that today corrupts our political system. By this means it transfers power from Washington back to citizens where our Founders intended it to reside.
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